Docusign Envelope ID.. 1F8278B0-881￿OCF-8207-277SF493g7B8 2024 The Methodist Church - Tower Hamlets Circuit (London District- Circuit No 35109) Charity Registration Number 1134888 Accounts for the year ended 31 August 2024 Do¢usSgn Envelope ID.. 1F8278BO.881640CF.B291.2775F4939788 THE METHODIST CHURCH IN TOWER HAMLETS TABLE OF CONTENTS Pages REFERENCES AND ADMINISTRATIVE DETAILS TRUSTEES. REPORT 4-10 STATEMENT OFTRUSTEES, RESPONSIBILITIES li INDEPENDENT AUDITORS, REPORT 12-14 STATEMENTOF FINANCIALACTIVITIES 15- 16 BALANCE SHEET 17 STATEMENT OF CASH FLOWS NOTESTOYHE ACCOUNTS 19. 31 Page 2 Oocuslgn Env81ope10.. 1F82TBBO.881640CF-8291.2775F49397B8 THE METHODIST CHURCH IN TOWER HAMLETS Reference and Admlnlstrative Detalls Name5 and addresses The addre55 of the registered office for the Tower Hamlets Circuit for the purposes of the Methodist Church Act 1976 3nd any other legislation is.. The Methodist Church in Tower Hamlets Bow Road Methodist Church l Merchant Street London E3 4LY Tel.. 020 8880 7301 Web.. www.mcth.org.uk Circult Office: Circuit Office l Merchant Street London E3 4LY Tel-. 020 8880 7301 Custodlan Trustees: Trustees for Method15t Church Purposes Central Buildings Oldham Street Manchester Ml IJQ Clrcult Leadershlp Team: Rev. Jenny Impey Deacon Theresa Simons-sam Mrs Harriet Graham-mensah Ms Verna Coke Mr lones Ankrah Rev. Davld HollinBSWOrth (until 31 August 20241 Mr Doug Swanney (until 31 August 20241 Investment Managers: Central Finance B03rd of the Methodist Church Methodist Church House 25 Tavistock Place London WCIH 9SF Trustees for the Methodist Connexional Funds Ireglsteredl Methodist Church House 25 Tavistock Place London WCIH 9SF Bankers: CAF Bank 25 Klngs Hill Avenue Kings Hill West Malling Kent ME19 41Q Independent Audltor: clay Ratnage Strevens & Hllls Chartered Accountants & Statutory Auditors Sulte D. The Busines5 Centre Faringdon Avenue Romford, Essex RM3 8EN Sollcitors: Lovell Son and Pltfield 9 Gray s Inn Square Gray s Inn London WCIR 51T Page 3 Oocuslgn Envelope ID.. 1F8278BO.8816.40CF.8291.2715F49397B8 THE MEfHODIST CHURCH IN TOWER HAMLETS Trustees, Report for the year ended 31 Au8USt2024 The Trustees present thelr report anil the audited accounts of the charity for the year ended 31 August 2024. The Trustees have adopted the provision5 of the Statement of Recommended Practice ISORPI "Accounting and Reporting by Charities" IFRS 1021 in preparing the annual report and accounts of the charity. The accounts have been prepared In accordance with the accountlng policies set out in note I to the accounts and comply with the Circuit'5 governing docltment, the Charities Act 2011 and Accounting and Reporting by Charities: Statement of Recommended Practice appllcable to charities preparing theiraccounts in accordance with the Financlal Reportingstandard applicable in the UK and Republic of Ireland IFRS 1021 leffective l January 20191- Governante The governing body of the Methodist Church is the Conference, whlch meets annually. The authority under which the Conference act5 is given by the Methodist Church Act 1976. We are governed by the Methodist Church's Constitutional Practice and Disclpline and all Charity Law of the United Kingdom. The church is governed by the Methodist Church Act 1976, the Deed of Unlon and the Model Trusts of the Methodist Churih. The purposes of the Methodlst Church are and shall be deemed to have been since the date of union the advancement of.. lal the Christian faith in accordance wlth the doctrinal standards and the discipline of the Methodlst Church Ibl any charitable purpose for the time being of any Connexional, (Jistrict. circult, local of other orEanisation of the Methodlst Church Icl any charltable purpose for the time being of any society or Institulion or subsidiary or ancillary to the Methodist Church; Idl any purpose for the time being of any charlty being a charity 5ubsldlary or ancillary to the Methodist Church. In setting our oblectives and planning our activitie5. the Circuit has 8Sven careful consideratlon to the Charity Commission's general guidance on public benefit and in particular to its svpplementary public benefit guidance on advanclng OL+r oblectlves as set out above. The Methodlst Church In Tower Hamlets Is part of the London Dlstrict of the Methodist Church, and Is a reglstered charity, number 1134888. The Circuit is also registered for Gift Aid with H M Revenue & Cu5t0ffl5 under the reference XR16174. Full Name of Charity: Methodist Church In Tower Hamlets ReBi5tration Charity Number: 1134888 Date of Registration: 12 March 2010 Maln Communlcatlon Address: Methodist Church In Tower Hamlets Bow Road Methodist Church l Merchant Street London E3 4LY Page 4 Docusign Envelop& ID.. lF8278BO-887￿OCF-82g1-21I5F4g397B8 THE METHODIST CHURCH IN TOWER HAMLETS Trustees, Report for the year ended 31 August2024 (continued) Trustees The full list of Trustees who seNed during the year and up to date of slgnature of the accounts weie as follows.. Tru51ees who joined during 2023124 are shown wlth an a5terix I'l. those who lelt during the year withl. Mr5 Glenda Adams Mr Joseph Amoah** Miss Susan Bothamley Ms Verna Coke Mrs Harrlet Graham-mensah Revd Dr Jongikaya Zlhle Rev lenny Impey Mrs Evelyn Louls M5 Ella Sibley-Ryan Deacon Theresa Simons-5am' Miss lean Thomas Dr Keith Aldred Mr Jones Ankrah Nana Abrafi Mrs Shella de Winter Ms Cheryl Gurnham Rev Davld Hollingsworth •* Mrs Dorrett Kirw3n" Mrs Lily Odartev Mr john Singleton Mr Doug Swanney Mrs Patience Yeboah ** Mpthod to recruit new Trustees There are a number of ex officlo trustees- a London Dlstrlct Chair, Presbyters, Deacons, Clrcuit Steward5, the secretary of the Local Preachers, Meeting together with the Treasurer and one Church Steward from each of the churches in the Circuit. These trustee5 wlll change when the post holders change. Addltlonal member5 from each church are appointed by the relevant Church Council or General Church Meeting. A Secretary of the Circuit Meeting, who is a Lay Person. is appointed by the meeting. Oblectlve and purpose The calllng of the Methodist Church in Tower Hamlets Is to respond to the gospel of God's love in Christ and to live out its discipleship in worshlp and mi55ion. This is expressed throuBh Worshlp, Learning and Caring, Evangelism and Service. The Circuit is committed to use its resources In a clearly focu55ed and intentional way to ensure an effective response to the need5 of our congregations and wider communitv. Actlvltles The fflission of the Clrcult Is to worship God a5 It celebrates its diversity according to the teachlngs of Jesus Christ. Insplred by Jesus we will offer hope and build communitles of love, through prayer. pastoral care and social mlnistry. Organlsational structure The Circuit includes responsibility for the Methodist Churches at Bow Road, Bethnal Green, Poplar, and Whitechapel. The churches at Bow Road and Bethn31 Green formally recognised that they were unable to fulfil their responsibilities as Managlng Trustees with respect to finance and property and both congregatlons delegated these responsibilities to the Circuit meeting as set out under the Model Trust, section 16 Ikl from 2014115. Accordingly. these accounts Include Bow Road and Bethnal Green Methodist Churches. Pastoral, worshlp and mission matters are discusseLI at General Church meetings, with at le35t two Church Meetings held during the year in Bethnal Green and Bow Road. Approval was given by the District for Old Ford Methodist Church to cease to meet for worshlp In 2022 butthe bulldlng remains in use for mission. Poplar Methodist Church has Its own managlng trustees but Is excepted from registration as a charity by virtue of Statutory Instrument No 242 oF2014 and produces separate accounts however Poplar Church Council agreed at its meeting in August to ask the circuit to assume managing trusteeship of the church. The Circuit Meeting has been asked to consider this. The Whitechapel Mission for the Homeless and Rootle55 of London is registered Separately with the Charity Commisslon 12279051. Page 5 DoGuslgn Env81op8 ID.. 1F8278BO_8BlfAQCF-B291_2775F4939788 THE METHODIST CHURCH IN TOWER HAMLETS Tru5tees' Report for the ￿ar ended ai August 2024 {contlnuedl OrgaTrisatlonal structure Icontinuedl In addition to the above, the Circuit ran two community and mission project5 as Internal Organisations. The two projects are: The Zacchaeu5 Project to support those who have long term Illness, the elderly and infirm and those who care for them in Tower Hamlets. Fundlng over and above th@ amount5 raised as grants and payments for the various activitie5 of the project Is now provided by Circuit investments. "Band for Llfe" providing a music workshop once a week at Bow Road Methodlst Church for people who have experienced mental Illness or are socially Isolated. Activlties were funded by grants and Clrcult investments which originated from thp sale of properties in previous years. Numbers attending the project continue to grow. The management of these projects Is undertaken by a project manager for each project, who provides a regular report to the Trustees. Each project is supported by a Steering Group which meets regularly to guide strategic direction and advise on any operational Issues. Clrcult Mlnlsters and offlters The Superintendent Minister and Chair of the Managing Trustees during 2023124 was the Rev. Jenny Impey who had pastoral responsibility for Bethnal Green, Bow Road, Poplar and Whitechapel churches. Deacon Theresa Simons-5am has been appolnted to have a partlcular focus on Bethnal Green and to support the Zacchaeus Projett. During the year the Rev. Davld Hollingsworth began to explore new methods of mlssion and disciple5hlp, through a Heartfelt project, but ill health prevented thi5 Starting. The Clrcult beneflted slgnlficantly from the voluntary mlnlstry of two Supernumerary minlsters. the Rev. David Hollingsworth and the Rev. Cameron Kirkwood, and a student mlnister, Mr Eric Bediako It was also able to make use of the minSslry of the Rev. Hannah Faal-Heim for 7 months whi15t She wa5 Otherwise without appolntment and expresses its gratitude to her nurture and encouragement of the congregatlon at Bow Road. In 202312024 there were slx Local Preachers in the Circuit and four worshlp leaders, Pastoral Support wlthin the ffircult Pastoral support Is provided by a team of pastoral visitors at Poplar and informally by members at other churches. The ministerial team also offer support. Lay staff structure The Circuit Administrntive structure remains under review. Facllities and Property Management is currently being undertaken by the Superintendent Minister wlth sUPPOrt from exlstlng staff and volunteer5. The Circuit employs a part time Flnance Manager and a part time Adminlstrator. Propertv The Circuit continue5 to review its Use of its propertie5. Following the change in difection on the major redevelopment of Bethnal Green, Minor works are continued in 202312024 with a total budget ofup lo £500,000 designated for this work. The Clrcult commenced slgniflcant work on the property at Bow Road to repair part of the roof and the concrete claddlng and sills. The prolect Is not yet complete and additional costs of £24,000 will be incurred to complete the project. The former manse at 2a Stepney Green has been sold. Proceeds of sale amounted to £978,332, out of whlch a levy of £367,333 has been taken for the Connexional Advance and Priorlty Fund to support mission around the Connexion. The money had originally come from the East End Mission Fund and so the money ha5 been lodged in Tru5120520. Page 6 Docuslgn Env81op& ID= IF8278BO-8816-40CF-8291-2775F49397B8 THE m￿HoDIST CHURCH IN TOWER HAMLETS Trustees. Report for the year ended 31 August 2024 Icontinuedl 25 Campbell Road.. As it Was not currently needed as a manse, it was agreed to let the house to a family under an AST for 2 years. In preparatlon for thi5 a new fire alarm system was installed together with some additional fire-proofing. Manse Approach Road.. New porch doors and back door have been installed to improve energy efficiency-* 95 South Road- New wlndows have been Installed to improve energy efficiency together with some redecoration. Plans for a new cOnse￿atOry and refurbished kitchen have been approved and work will be undert3ken in the comlnE year. Lan￿hOrne House (adjacent to Bow Road) The leaseholders have approached the circult with a view to extending the leasehold or purchasing the freehold. A surveyors report has been commissioned. Safeguardlng The clrcult has adopted the Safeguardlng Pollcy of the Methodlst Church and reviews this annually ensuring that appropriale DBS checks are undertaken. and volunteers and employees undergo appropriate Iraining. Achievements and performance During 2023124 the Methodist Church in Tower Hamlets contlnued Its mlnlstry and seTvice to the people of the Borough though the provision of worship and service opportunitie5 in four congregations. the continued sUPPOrt of the homeless, elder5 and their carer5 and people wlth mental health Issues through the Whitechapel Mi5slon. the Zacchaeus and 83nd for Lile projects. The Whltechapel Mission has continued to expand as it serve5 the homeless and marBlnallsed since 1876 offering 3 day centre, skills training and careeradvice, activity programmes and specialist supportfor complex needs. By encouraging eath person to address the issues which caused their homelessness. the mission helps them to gairh the skills and confidence to make lasting chanEes in their lives. The Zacchaeus Project proved once again in 202312024 that it has made a Significant contribution to the live5 of so many older people and carer5 who attend its various activities. There has been a significant r15e In the numbers of people seeklng advice and support in obiaining the grants and benefit5 they are entitled to. A new diet and exercise clas5 started wilh an aim of improvinB memberfs health and wellbeing. Grant5 have been recelved Irom the London Borough of Tower Hamlets and the Canary Wharf Group. We have been pleased to welcome new volunleers to the prolect. The project celebrated 25, Annlversary to In July 2024. marking 25 years of service to the community. The Band for Life Project, based at Bow Road, continues to develop and respond to the needs of those who attend. The group weie able to resume public performances in Canary Wharf and The Space. Poplar Methodist Church contlnued to meet in the Ernery Hall of the Queen Victoria Seaman's Rest. The church Inltiated a coffee afternoon in the re5taurantofthe QVSR which 15 attended by church members and residents. There was one baptism during the year. Bethnal Green congregatlon attracts a wlde range of vlsltors. a number of whom have worshlpped regularly for the time they were In the area. Bow Road continues to meet weekly for worship and holds an online prayer meeting. We were pleased to welcome 7 new new members this year, 2 of whom have a150 become church steward5. and the others are serving In a varlety ot ways. Page 7 Docu51gn Envelope ID.. 1 F8276BO-B816-40CF-8291-2775F49397B8 THE METHODIST CHURCH IN TOWER HAMLETS Trustee5' Report for the year ended 31 August 2024 Icontlnuedl Under the leadership of the Rev. Cameron Kirkwood, the Circuit once again ran a Warm Space at 8ethnal Green for the winter of 202312024 and thi5 has proven to be a welcome addition to the piolects of the Circuit, providing a space where people can keep warm, be piovlded with drinks and snacks, enjoy company or solltude, recharge phone5 and lust relax. The clrcult contlnued to Improve Its provision at Bethnal Green and the Zacchaeus Project by Ltndertaking some refurbishment. intluding new flooring in the corridors. In the comlng year it hopes to install double glailnE and new doors and we are working with the London Borough of Tower Hamlets to agree a suitable design given its location in a conservation area. Bethnal Green Methodist Church provided temporary accommodation a5 a registration centre and waiting room for the Bow Foodbank from December 2023 to July 2024. During thls tlme 16,000 adult food parce15 9.200 children's food parcels and food worth over £350,000 was given by the Foodbank to 3497 8LFests. The Circuil continued to work with Age UK East London to support a knSt and natter group at Old Ford Methodlst Church. 5 women from the circuit were sP01150red to attend a national Methodist Women In Brilain Conference to Insplre and equip them for Service locally. The Circuit churches provided vital space for community actlvltles at each of its churches. Investments The Clrculvs proceeds from property sales relating to the East End Mission are classed as City Centre funds and as a result are held by the London Distrlct ITrust 205201. An amount equivalent to the interest on thi5 fund is glven to the Circult as a grant. The Brant for 202312024 was £100,365 received from Trustee interest and Dividend5. An additional grant of £IOO,000 was also recelved for diaconal ministry. The balan￿ held by Trust as at 31 August 2024 was £2,702,426 that includes £402,700 that has been designated for the Bethnal Green Methodist Church for prem15es work and a further £400.000 for Illaconal ministry based at Bethnal Green. Thi5 amount also includes net sale proceeds amounted to £610,999 (Sale proceeds of £978,332 les5 £367,333 levy pald on sale of Manse, 2a 5tepney Greenl- The investment of Surplus funds Is operated via the Central Finance Board ICFB) of the Methodist Church. CFB aims to provide high quality investment service seeking above aveiage returns for long-term investors, whllst ensuring that the securlties held by all Its funds are in line with the ethical policy of the Methodist Church. The Circuit has its funds in a deposlt account wlth CFB. The Restricted Fund whlch is mainly fund5 from sales of properties is managed byTrustees for Methodist Purposes ITMCPI. These funds are also invested with CFB. The Trustees continue to utili5e these funds for the furtherance of the Circuit'5 mission. Publlc Benefit The Trustees have due regard to the guldance publlshed by the Charitie5 Commission In accoTdance with its dutles under section 17 of the Charities Act 2011. This guidance sets out two key principle5: l. The organisation must have an identifiable benefit. 2. The benefit must be to the publit or a section of the public. The church exists to: increase awareness of God's presence and to celebrate God'5 love,. help people to learn and grow as Christians, through mutual support and care; and be a good neighbour to people in need and challenge injustice. The Trustee5 consider that for these reasons the charity meets these publlc benefit requirements. Page 8 Docusign Env8lope ID. 1 F927880481640CF-8291-2775F49397BB THE METHODIST CHURCH IN TOWER HAMLETS Trustees, Report for the year ended 31 August 2024 Icontinuedl Financial Revlew Circuit ministry and mission is funded mainly through Incoming rents from the Circuit propertles and interest from investments a5 well as the offering receipt5 from the churche5 at Beihnal Green and Bow Road. and the assessment contTibutlOll5 from the Poplarchurch. The work of the social mission pToletts, includlng part of the ministerial costs, is dependent on the continued recelpt of extemal grants, which continue to be supplemented from the Interest from the Ctty Centre Funds (held by the London Dlslrlctl and proceed5 of sale of other sites. The cost of running and maintaining the properties on a day-to-day basls is funded from the Income generated from lettings and tenancie5. Repairs and refurbishments are currently funded from the sale proceeds of other sltes, however in general all are in good condition. The Circuit recognlses that it is drawlng heavily on Its reserves and is monitoring this sliuation and reviewinB Its work. The value of the arcult funds as at 31 August 2024 was £6,465.724 whl(h a decrease of £671,216 from the previous year. This large decreasewas dueto transfers of fund5 from thetru5t 15955 which is held by Circvitto the Circuit trust 20520 held at District level. Trustees, Interests The Minister5 who are Trustees of the Circuit and stationed to the Circuit by the Methodist Church in Britain are Office Holders and are pald a stipend and are provided with a manse for the Ministers and their families to live in. Council Tax is paid by the Circuit and a150 an official telephone line with broadband facilities to enable them to carry out their service as Minlsters. These arranEemenls are practiced throughout the Connexion who silpulate thelrterms of servlce. One Trustee, Dorrett Klrwan was an employee of the Clrcult in 202312024. However, her appointment as a Trustee is unconnected to the employment by the Circuit and she receives no remuneration for her service a5 a Trustee. Any conflict of interest 15 declared at the commencement of each meeting. Her trusteeshlp ended in March 2024. Rlsk Management The Circuit is reviewing its risk polSdes and is pmducing a Risk Register highlightlng the variou5 ri5k5 facing the CirculL the Impact and the likelihood of them happenlng. The main headings under whlch these ri5k5 have been calegori5ed are: Trustees, Responsibilitie5 Membershipand mI￿10n Resour￿5, People and Property Financial &Afeg￿rdIng Re5erve5 Pollcv The prlmary use of the Circuit fund is to support the ordained ministers, lay ernployee5 and congregations of the churches in their calllng to worship, learning and caring. servlce and evangelism and to support of the wider community in the Borough of Tower Hamlets, through projects. The unrestricted funds of £6,427.658 include propertie5 in use for the purpose of the Clrcuit and other Investments that generate income upon which the Circuit is reliant upon to Sustain its core activities. RecoBnising the significance of the mlssSon of the churches and proSec¢s of the Methodist church In Tower Hamlets and the care that would be needed In ensuring alternative provislon If they needed to be wound down, the reserve5 pollcy of the Methodlst Church In Tower Hamlets is to maintain a reserve of 6 month5 ordinary expenditure plus the underwriting of the Whitechapel mission to the tune of £IOO.000 and accrued redundancy costs for Circuit staff. Page 9 Docusign Envelope ID.. IF8278BO-881640CF-8291-2775F49397B8 THE METHODIST CHURCH IN TOWER HAMLErs Trusteeg Report for the year ended 31 AuBUSt 2024 Icontlnuedl Commltment5 All known commitments are included In the accounts. Plans for the future It is the intention to continue to keep under review the existing activities of the local Churches and Circuit to ensure they continue to Serve thelr purpose in the current context. In addition, the Clrcult will contlnue to assess the needs of the local community and. where relevant, consider the deployment of resources in extendlng the services currently provided to support the congregatlon5 In thelr mlsslon and to the broader communlty. Where possible, the Clrtult wlll apply for grants in order to develop those initiative and ensure their sustainability into the future. In addition to its ongoing funding of the Zacchaeu5 Project the circuit has agreed to underwrite the Project by £50,000 in the coming year if the project 55 unable to 5e£ure a key grant it ha5 applied for. A new Digital Inclusion inltiative will be run by the Zacchaeus Project with the support of a grant from the London Borough of Tower Hamlets. The Circuit has commissioned quinquennial reviews of its properties which wlll be undertaken in October 2024. The circuil intends to continue to maintain Its bulldlngs and In partlcular to install double glazing at Bethnal Green to Increase energy effSciency and to ynderlake necessary work on the roof and window cllls at Bow Road and work identifled in the quinquennial reports on its properties. It will contlnue to revlew Its provlsion of manses for the mintsters who are appolnted to the clrcult. In partl¢ul3r the Clrcuit will look to sell 25 Campbell Road at the rlght time and buy a more manageable. energy elficient manse in the area. Dlsclosure of Informatlon to audltors In so far astheTrustees are aware: there Is no relevant audit Information of which the charivs auditors are unaware,. and theTruslees have taken 811 the steps that they ought to have taken to make themselves aware of any relevant audit informatlon nd loestabli5h that the audilors are aware of that information. Audltors The audltors. Clay Ratnage Strevens & Hills, were newly appointed at the Twstee's meeting in September 2023. This report has been prepared by the Trustees wlth support of Circult staff, the Mlnlsters and Clrcult Stewards. They can be contacted at Bow Road Methodist Church, l Merchant Street, London, E3 4LY. Approved by the Trustees on the 1310212mS and slgned on thelr behalf bv: IbMffUI Revdjenny Impey Circult Superlntendent Mlnlster Page 10 Docu51gn EnvalopB ID.. 1F8278BO-881640CF-8291-2775F4939788 THE METHODIST CHURCH IN TOWER HAMLETS Statement of Trustees, re5ponslbllitles for the year ended 31 August 2024 The Tfustees are responsible for preparing the Trustee5' Report and the accounts iri accordance with applicable law and Unlted Kingdom Accounting Standard5 (Uniled Kingdom Generally Accepted Accounting Piaclicel. The law applicable to charitie5 In England and Wales requires the Trustee5 to prepare accounts for each financial year, whichgive a true and fairview of the state of affairs of the Circuit and of the incoming resources and application of resources of the Circult for that year. In preparing these accounts, the Trustees are required to.. select suitable accounting policies and then apply them consistentlyi observe the methods and prlnclples in the Charitles SORP 2019 IFRS 1021,. rnakeludBements and estlmate5 that are reasonable and prudent: state whether appllcable accountlng standards have been followed, subject to any material departures disclosed and explalned in the accounts, and prepare the accounts on the going concern basis unle55 It is inappropriate to presume that the Charity wlll continue in operation. The Trustees are responsible for keeping Sufficient accounting record5 that disclose wlth reasonable accuracy at any time the financlal posltion of the Clrcuit and enable them to ensure that the accounts comply wlth the Standing Orde15 of the Methodist Church, the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and other relevant regulations. They are also responslble for safeguarding the assets of the charity and hen￿ for taking reasonable steps for the prevention and detection of fraLFds and other irregularities. Page 11 Docuslon Envelope ID.. 1F8278BO-881640CF-8291-2775F49397B8 THE MEfHODIST CHURCH IN TOWER HAMLETS Independent Audltor's Report to the Trustee5 of The Methodlst Church In Tower Hamlets Oplnlon We have audited the account5 ofThe Methodist Church In Tower Hamlets Ithe'charity'l forthe year ended 31 August 2024. whlch coinprise the Statement of Flnancial Activities, the 8313nce Sheet, Cash Flow Statement and the notes to the accounts, including a summary of significant accounting policies. The financial reporting framework that ha5 been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financlal Reporting Standard applicable in the UK and Republic of Ireland, (United Kingdom Generally Accepted Accountln8 Practlcel. In our oplnlon, the accounts: give a true and fair vlew of the state of the Charity's affaSrs as at 31 August 2024 and of Its Incomin8 resources and application of resources, including its income and expenditure, for the year then ended,. have been properly prepared in accordance wlth United Kingdom Generally Accepted Accounting Practice; and have been prepared in accordance with the requlrements of the Charities Act 2011. Basis for opinlon We conducted our audit in accordance with International Standards on Auditing IUKI IISAS IUKII and applicable law. Our responsibilities under those 5tand3rds are further described In the Audltor's responsibilities for the audit of the accounts section of our report. We are independent of the Charity in accordance with the eihical requirements that are relevant to our audlt of the accounts in the UK, including the FRC'S Ethlcal standard, and we have fulfilled our other ethital re5ponsibilitie5 in accordance wlth these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our oplnlon. Conclu51ons relating to golng concern In audltlng the 3ccounts. we have concluded ihat the Trustees. use of the golng concern basis of accountlng in the preparation of the accounts Is appropriate. Based on the work we have performed, we have not identified any materlal uncertalnlles relating to events or conditlons that, individually or collectively, may cast 51gnificant doubt on the Charitls abllity to continue as a going concern for a perlod of at least twelve months from when the financial statements are authorlsed for issue. Our responsibilities and the re5ponslblllties of the Trustee5 Wlth respect to gulng concern and described In the relevant sectlons of thls report. other Informatlon The other information comprises the informatlon Included In the trustees, annual report, other than the financlal statefflents and our auditorfs report thereon. The trustees are responsible for the other information. Our opinion on the financial statements does notcoverthe other information and we do not expressany form ofaSSuran￿ conclusion thereon. Ouf responsibility is to read the other information and. in doing so. conslder whether the other information is materially Inconslstent wlth the account5 or our knowledge obtained In the audit, or otherwlse appears to be materially m155tated. If we identify such material inconsistencies or apparent material m155tatements, we are required to determine whether this give rise to a material misstatement In the account5 themselves. If. based on the work we have performed, we conclude that there Is a materlal mlsstatement of this other information. we are required to report that lact. We have nothing to report in this reBard. Page 12 Docuslon Envelope ID.. 1F8278BO-881640CF-8291-2775F4939788 THE METHODIST CHURCH IN TOWER HAMLETS Independent Audltor's Report to the Trustees of The Methodlst Church In Tower Hamlets {tontlnuedl Matters on which we are requlred to report by exception We have nothing to report in respect of the following matters In relatlon to which the Charitles (Accounts and Reports) Regulations 2008 require us to report to you if, in OUT opinion.. the information given in the Tru5tees' report15 inconsistent In any material respect with the accounts- or sufficient accountlng records have not been kept; or the accovnt5 are rbot In agreement wlth the accounting records,. or we have not received all ihe information and explanations we require for our audit. Responslbllltles of Trustees As explalned more fully In the statement of Trustees 'responsibilities set out on page 11, the Trustees are responsible for the preparation of the accounts and for being satisfied that thev give a true and fair view, and for such internal control as the Trustees determine 15 necessary to erkable the preparatlon of accounts that are free from material misstatement. whether due to fraud or error. In preparing the accounts, the Trustees are responsible for assessing the Charity'5 ability to continue as a going concern. disclosing, as applicable, matters related to going concern and using the going concern ba515 of accounting unless the Trustees either Intend to liquidate the chaflty or to cease operation5, or have no realistic altefnative bul to do so. Auditorf5 responslbllltles for the audlt of the accounts We have been appointed bs auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulatlons made or havlng effect thereundei. Our objectives are to obtaln reasonable assurance abolgt whether the accounts as a whole are free from material misstatement, whether due to fraud or error, and to Issue an auditorfs report that includes our opinSon. Reasonable assurance is a high level of assurance but Is not a guarantee that an audit conducted in accordance with ISAS IUKI will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if. individually or in the aggregate. they could reasonably be expected to Influence the economic decisions of users taken on the basls of these accounts. To identify risk5 of material misstatement due to fraud {"fraud rlsks'l we assessed events or condltions that could indicate an incentive or pressure to commit fraud or provide an opportunlty to commit fraud. Our risk asse55ment procedures included: Obtaining an Understanding of the legal and regu13tory frameworks applicable to the charity and the sector in whlth they operate. Obtained an understanding of how the charity are complying with those legal and regulatory framework5 by making enquirie5 to the management of the charlty's accountlng department, and management itself. The susceptibility of the comp3ny's financial statement5 to material misstatement cavsed by fraud or other irregularities were assessed with the following procedures.. Identifying and assessing the design effectiveness of controls whlch management have in place to prevent and detect fraud Understanding how those charged with governance considered and addressed the potential for overrlde of controls and management biases Identifying and testing journal entrles, in particular any journal entries posted with unusual account combinations Assessing the extent of compliance with the relevant laws and re8ulatlons Assessing the extent to which pressures existed which may have Increased the risk of fraudulent revenue recognitio Page 13 Doojsign EnvBlope ID.. 1F8278BO-881640CF-8291-2775F4939788 THE METHODIST CHURCH IN TOWER HAMLETS Independent Auditor's Report to the Trustees of The Methodlst Church In Tower Hamlets {contlnuedl Potential fraud ri5k5 that had been identified throughout the planning and commencement of the audit were communicated to the audit team. The inherent limltatlons of audit present an unavoidable risk that we, the auditors, may not have detected some material misstatements within the financial statements despite proper planning and performance of our dutie5 as auditors. Equallyi there remalns a rlsk of the non-detection of fraud which could involve collusion, forgery, intentional omi55ions, mlsrepresenlations, or the override of Internal controls. The audit procedures carried out are deslgned to detect material mlsstatements within the financSal statements, and a5 such we take no responsibility for preventSng non-compllance or fraud and cannot be expected to detect non-compliance with all laws and regulation5. A further description of our responslbilities for the audit Df the accounts is located on the Financial Reporting Councll's webslte at-. http'.Ilwww.frc.org.uklauditorsrespon5ibilities. This description foTm5 part of our auditor's report. Clay Ratnage Strevens & Hills Chartered Accountants & Statutory Auditors Suite D, The Buslness Centre Farlngdon Avenue Romford Essex RM3 8EN L%Iz120Lr Clay Ratnage Strevens & Hills is ellglble to act as auditor in terms of Section 1212 of the Companies Act 2006. Page 14 DoGusign Envelope ID.. 1F8278BO-881640CF-8291-2775F49397B8 THE METHODIST CHURCH IN TOWER HAMLETS Statement of Flnanclal Artlvltles for the year ended 31 August 2024 Unrestrlrted Fund5 Restrlrted Fund5 2024 Total 2023 Total Note5 Income and Endowments from.. Circult assessment OFlerings Grant5 and donation5 received Investment income and interest Rental income Other Income Internal organlsatlons Total Income Expendltltre on: Charitable actlvltles Stipend5 and staff costs.. MinÈstry Internal organlsatlons Distrltt assessrnent Telephone. travel & admlnlst¥atlon p￿PertY Malntenance Expenditure on other Circuit propertles District advance fund Other expenditure Internal orRanisations Grants and donation5 Totsl ÈXPEndlture 6,SOLI 12,756 100.B(Kl 54,806 169.183 77.283 6,500 12,756 201,450 54,910 169,183 77,283 83,613 605,695 5,500 10.725 94,166 77,969 144,490 78,332 24,141 435,323 I￿,650 104 io 83,613 184,367 421,328 192,315 39,879 115,633 232,194 115.633 22,576 10,754 173,019 30,213 50.706 52,919 43,774 25 731,813 211,764 104,726 21,916 10,107 80,375 2,206 54.874 47,660 41,800 io 22,576 10.754 173,019 30,213 50,706 19.137 li 12 13 io 33,782 43.774 14 25 498.745 233.068 575,428 Galn5 on dlsposal of Manse Capital payment Galns on ￿ValUatIOn of flxed assets Net 8alns/llosseslon Investments 16 16 368,294 1978,3321 368,Z94 1978,3321 235,OC 12,1561 64,940 64.940 Net expendlture before transfer5 1622.5151 148.701} 1671,2161 92,739 Transfers between funds 171,1431 71,143 Net movement In funds {693.6581 22.442 1671.216) 92,739 Fund5 balances at I September 2023 Funds bal8nce5 at 31 August 2024 7,121,316 6,427,658 15,624 aB,066 7.136,940 6.465,724 7,044.201 7,136.940 The nDte5 on pages 19 to 31 form an Integral part of these account5. Page 15 Docusign Envelope ID.. IF827890481640CF-8291-2775F49397B8 THE METHODIST CHURCH IN TOWER HAMLETS Statement of Flnan¢lal Artlvities for the year ended 31 August 2024 Comparathie yearlnformotlon Yearended 31 August20Z3 Unrestrfcted Restrlcted 2023 Notes Fund5 Funds Total Income and Endowments from: Circuit assessment orferings Grants and donatlons rece5ved Investment income and Interèst Rental income Other intotne Internal or8ani5atioThs Tolal Income 5,500 10.725 94,166 77,969 144,490 78.332 24,141 435,323 10,725 69,466 77,902 144,490 78,163 24.700 67 169 24,141 49,077 io 386,246 Expendlture on: Chartlable actlvltles Stipends and staff costs-. Ministry Internèl organisations District assessrnent Telephone. travel & admtnistration Propprty Maintenance Expenditure on otherclrcult propertles District advancè funEI Otherexpenditure Internèl orEanisations Total expenditure 211,764 211,764 IIM,726 21,916 10.107 80.375 Z,206 54.874 47,660 41.800 575A28 io 104.726 21,916 10,107 56,675 2,2Q6 54,874 47,118 li 23,71YJ 12 13 542 io 41,800 170,768 404.660 Gains on revaluation of fixed assets Net1055 on investments 235,000 2,156 235,000 {2.1561 Net expendlture before transfe 214.430 IIZl.6911 92.739 Transfers between funds 91,6541 91,654 Net movement In funds 122.776 130.0371 94739 Funds balances at I September 2022 IRestatedl Funds balance5 at 31 August 2023 6,998,540 7,121,316 45,661 15,624 7,044,201 7,136,940 The notes on pages 19 to 31 form an Inte￿11 part of thèse accounts. Page 16 Docusign Envslope ID.. 1F8278BO.881640CF_8291_2775F4939788 THE METHODSST CHURCH IN TOWER HAMLETS Balan￿ Sheet 35 at 31 August 2024 Unre5trirted RÈ51rlrted 2024 2023 Funds Funds Total Total Note5 FIMed Assets Tangible assets Investment properties Investments 16 3,241,997 1,960,295 492,710 5.695.002 2SO 3,242247 1,960,295 492.710 5.695,252 3,858,881 1,960,383 427,770 6.247.034 17 18 250 Current Assets Debtors 20 119.237 338.822 262.402 88,288 808,749 119,237 338W22 308.073 90.574 856.706 122,082 469,331 351,819 72,525 1.015.757 T,M.C.P. Interest funds Central Fi nance Board Deposits Cash at bank and in hand 45,671 2,286 47,957 Credltors: amounts falllng due wlthln one year 21 176,0931 110,1411 186.234) 1123,2111 Net Current Assets 732,656 37.816 770072 892.546 Totalassets less current Ilabllltles 6.427,658 38,066 6A65,724 7,139,580 Crèditors: Amounts falllnE due after more than one year 22 12,6401 Nel A￿et$ 6A27.658 38,066 6.465,724 7,136.940 A￿UMUlated funds Unre5trlcted fund5 5.972,658 5,972,658 38,066 455.000 6,465.724 6.666,316 15.624 455,000 7,136,940 Re5trlcted funds 24 38,066 Revaluation reserve 455,000 6,427,658 Total Funds 25 38,066 The accounts were approved by theTrustees on 1310212QIP25 and 51Bned on their behalf by.. Revd lenny Impey Clrcuit Superlntendènt Mlnlster Msverna Coke Clrcuit Steward The note5 on pages 19 to 31 form an it)tegral part of these accounts. Page 17 Docuslgn Envelope ID.. 1F8278BO.8816.40CF_8291.2775F49397B8 THE METHODIST CHURCH IN TOWER HAMLErs Cash ffow statement for the year ended 31 August 2024 2024 2023 Stalement of ¢ash Ilow$ Note Ca5hfrom operatlng actlvltles Net cash tjsed In operating actSvitle5 1.560.171 90.191 Cash flows from Inve511ng actlvltles Dlvidend5,interest and renls from InveStme￿ts Proieed5 liomthe53le of property. plant and eoulptnETrI Purchaseof propÈrty* plant and equipment Purchaseof InianElble a55e15 Procoeds Irom IhesHleol Investments Purchase of investments Other 425.543 978,422 316.62S 90 22,593 Ntt ts5h provlded by Irwestlngartlvllles IA03.965 339.308 Cash flow5from IlnartdthKattivltles NewbDrrowing Repayments olborKovAnK Net L35h used In ftnanclng actlvhl*s Chan80 In ¢4sh and ta5h equlvalents In the reportlnmperlod Cash and cash equivalents at the beginning of the rÈporiinR period Cash and wh e4ulvalent$ at the end of the reportlng perlod 1156,2061 893,675 737N69 429.499 464.176 893.675 2024 2023 Reconrillatlon of net Income to net cash Ilow from o eratln aclfvitle5 NEI Sncomefor the reporting period l as per staternent of financial activitlesl 1671,2161 92.739 Adlustrntnts for: Depreciation and amortlsatlon charBes Profit on the sale of fixed a55ets L05s on thesale of fixed assets Unreallsed Gains on Investrneat5/revaluatioTh Divldends, Interest and rents from Investments Decreaselllncreasel In stocks Ilncreaselld￿rease In debtors increase/ldecreasel In credliors 13 1.298 1362,9981 4.134 164,9401 1425,5431 1232,8441 1316,6251 2,845 139,6171 519,256 23,533 Net (ash used In operatlng a¢tlvitles 11.560.171) 90.191 Z024 2023 Ana Is olta$h and o5h e Cash In hand Shortiermdeposlt (less than 3 rnonihsl Total tdsh and fosh equlvalent5 ulvalent 737.469 893.675 737,469 893,675 The notes on pages 19 to 31 form an integral part of these accounts. Page 18 Docuslgn Envelope ID.. 1F8278BO-881640CF-8291-2775F49397B8 THE MEfHODIST CHURCH IN TOWER HAmL￿s Notes to the accounts for the year ended 31 August 2024 l. Accountlng policle5 al Clrcult Informatlon The Methodist Church in Tower Hamlets is an unincorporated charity in England and Wales. The principal correspondence 3ddre55 is given on paEe 3 of these accounls. The nature of the Clrcuit's operations and prlnclpal activities are set out in the Trustees, RepDrt. bl Accountlng convention The accounts have been prepared in accordance with the Charitie5 Act 2011 and 'AccountinE and Reportlng by Charities.. Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ire13nd' (FR5 1021 leffedive l January 20191. The Circuit Is a Pvblic Benefit Entity as defiried by FR5 102. The accounts have departed from the Charities (Accounts and Reports) Regulatlons 2008 only to the extent required to provide a true and fair view. Thi5 departure has Involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Prartice which is referred to in the Regulations but which ha5 slnce been wlthdrawn. The accounts are prepared in sterling, which is the functional currency of the Circuit. Monetary amounts in these accounts are rounded to the nearest pound. The accounts have been prepared under the h15torlcal cost convention. modified to Include the revaluation of investment properties and certain financial instruments at fair value. The princlpal accounting policie5 are set out below. cl GolnB concern At the time of approving the accounts, the Trustees have 3 reasonable expectation that the Circuit has adequate resources to continue in operatlonal exlstence for the foreseeable future. Thus, the Truslees contlnue to adopt the going concern basis of accounting in preparing the accounts. dl Funds Unrestrirted funds Unrestricted fund5 are held for use at the discretion of the Trustees In furtherance of the general objectives of the Charity. Restricted funds Restrlcted funds are funds whlch are to be used In accordance with specific restrictions Imposed by donors and grantor5. The aim and use of the major restricted funds are set out in the notes to the accounts. e) Incomlng resources Church assessment The church assessment is accounted for on a recelv3ble basls. Church offerin Church offerin8s are accounted for on a receipts basls. Page 19 Docvslgn Envelop9 ID.. 1 F8278BO-881640CF-8291-2775F4939788 THE METHODIST CHURCH IN TOWER HAMLErs Notes to the accounts for the year ended 31 August 2024 l¢ontlnuedl l. A¢¢ountlng pollcles Icontlnuedl Benevolence Benevolence funds have been historically contributed by the four churches frorn their general funds and 8fe accounted for on a receipts basis In accordance with Standlng Order 527 of the Constitution of the Method15t Church. Grants and donations received Grants from thlrd partie5 are included when the relevant conditions for the grant have been met. Voluntary income comprises donations and contributions and is accounted forwhen entitlement has been confirmed, the amount can be measLrred and receipt Is probable. Rental income Rental income from investment properties is accounted for on a receivable basls. Other income other Income is accounted for on a receivable basis. Internal Or anlsatlons Internal organisalions comprise two projects of the Methodist Church in Tower Hamlets Circuit. The income is either derived from voluntary incomei grants and donations by way of charltable actlvltles. Irsvestment income and interest Interest on deposits and investments is accounted on a receivable basls. Expendlture re¢oBnltlon All expenditure is accounted for on an accruals basis when an obligation that can be measured or reliably estimated exists at the reportlng date. Grants awarded are provided in the Statement of Financial Activitles in theyear in which they are approved byTru5tees and the offer is communicated to the recipient. Grant5 awarded but not paid are recorded as a liability withSn the Balance Sheet. Grants awarded subject to conditlOll5 belng met by the recipient before payments are made are not accrued untll such conditions have been met. Such commitments are disclosed in the accounts as contingent Ilablllties. gl Tanglble Ilxed assets Properties are stated at C05t or in the case of donated assets at valuatlon at the date that the assets are gifted to the Circuit. The Trustees conslder that the lives of the properties are so long and their residual values so high based on prices prevalling at the tlme of acquisltlon that any annual depreciation charge would not be material. Accordingly, no depreciation is provided on freehold propertles used for charitable activities. Any materlal Impairment in the value of such properties, followlnE an annual review, would be chargeable to the Statement of Flnancial Activities. Assets having an Inltial cost of £l.000 or less are written off on acquisltion. Fixtures and fittings, office and computer equlpment having an initlal cost greater than £l.000 are tapitalised and are stated at cost less depreciation. Depreciatlon rates calculated to wrlte off the cost less estimated resldual value of each asset over its expected useful life are as follows: Fixture5, fittings and equipment.. Office equipment: 10%- 20% on a straight line basi5 20% on a stralght Ilne bas15 The galn or loss arlsing on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the a55et, and is recognlsed In the Statement of Financial Activities for the year. Page 20 Do¢uslgn Erwelope ID.. 1F827890.881640CF.8291_2715F49397B8 THE MEfHODIST CHURCH IN TOWER HAMLETS Notes to the accounts for the year ended 31 Au8USt 2024 Icontlnuedl Attountlng policies l£ontlnuedl h) Investment propertle5 Investment properties, which are propertie5 held to earn rentals andlor for capital appreclation, are initially measured at cost and subsequently stated at the Trustee5' estSmates of the fair valuation at the year-end, based on an index of property price5 in the relevant areas. Any surplus or deficit on revaluation is recogn15ed in the Statement of Financial Activities. l) Non-current investments Fixed assets investments, which are held in units in the Trtjstees Methodist for Church Purposes ITMCPI, are stated at the Board's publlshed valuations at the year-end. Realised and unrealised galns and losses on Inve5tment5 are recognised in the Statement of Fin3ncial Activities. A) ImpalrmeTht of non